✅ At a Glance
| Metric | FY24 | FY25 | YoY Change |
|---|---|---|---|
| Revenue | ₹2,206 Cr | ₹2,234 Cr | ⬆️ 1.3% |
| PAT | ₹805 Cr | ₹1,124 Cr | ⬆️ 39.6% |
| EPS | ₹26.16 | ₹36.52 | ⬆️ 39.6% |
| CMP (as of May 19, 2025) | ₹524.70 | ||
| TTM P/E | ~14.4x |
Revenue barely moved. But profit? Zoomed like crude prices after an OPEC fight.
🧪 About the Company
IG Petrochemicals Ltd is India’s largest phthalic anhydride (PA) manufacturer.
Translation: they’re in the chemical business. Not the flashy IPO types — but the quietly compounding cash-flow kings.
- Listed on: BSE, NSE
- Segment: Single – Trading & Manufacturing of Chemicals
- Status: Old-school, debt-aware, margin-squeezing machine.
👨💼 KMP & Auditor Info
| Role | Name |
|---|---|
| CEO | Mr. Nikunj Dhanuka |
| Chairman | Mr. Madan Mohan Dhanuka |
| Auditor | MSKA & Associates & SMMP & Co. (dual auditors bro 💼💼) |
📊 FY25 Financials Breakdown
P&L Highlights
| Metric | FY24 | FY25 | YoY |
|---|---|---|---|
| Revenue | ₹2,206 Cr | ₹2,234 Cr | ⬆️ 1.3% |
| Other Income | ₹27 Cr | ₹277 Cr | 🧙♂️ +927% |
| EBITDA (Est.) | ₹359 Cr | ₹439 Cr | ⬆️ 22% |
| PAT | ₹805 Cr | ₹1,124 Cr | ⬆️ 39.6% |
| EPS | ₹26.16 | ₹36.52 | ⬆️ 39.6% |
EPS up, thanks mostly to “other income”. Shoutout to investments saving the quarter. 📈💸
🧮 Forward Value (FV) Estimation
Let’s stay conservative, like your CA.
- TTM EPS: ₹36.52
- Fair P/E: 15 (commodity chemicals, high volatility)
✅ FV = ₹36.52 × 15 = ₹547.80
CMP = ₹524.70
➡️ Upside: ~4.4%
✅ Fairly Valued. Enter if you’re bullish on chemicals or just want a dividend-friendly grinder.
🏦 Cash Flow Highlights
| Type | ₹ Cr |
|---|---|
| 🧾 CFO (Cash from Ops) | ₹265 Cr |
| 🏗️ Capex (PPE purchase) | ₹1,039 Cr |
| 💸 FCF (CFO – Capex) | -₹774 Cr |
| 📉 CFI (Investing Cash Flow) | -₹876 Cr |
| 🏦 CFF (Financing Flow) | -₹1,361 Cr |
| Net Change in Cash | ₹408 Cr (because of last year’s low base) |
Despite profits, free cash flow is negative due to aggressive CAPEX. They’re betting big on future scale.
🏭 Balance Sheet Snapshot (FY25)
| Item | ₹ Cr |
|---|---|
| Equity | ₹1,327 Cr |
| Total Assets | ₹2,168 Cr |
| Total Liabilities | ₹841 Cr |
| Inventory | ₹294 Cr |
| Cash + Bank | ₹185 Cr |
| Borrowings (Long + Short) | ₹2,364 Cr |
| D/E Ratio | 0.65x (manageable) |
💣 Related Party Red Flags
- Loans to subsidiary: ₹130 Cr
- Remuneration to Dhanuka family = 🎉
- Multiple rent + commission transactions within family 👨👩👧👦
- Total RPT value: ₹345 Cr+ 🤯
🎯 EduInvesting Take
“When revenue’s chilling but PAT is sprinting — look for magic in ‘Other Income’.”
IGPL has built a consistent, well-managed business. But FY25 growth came not from sales, but from financial wizardry (investments, interest, income). And that makes us cautious.
CAPEX-heavy. Chem-heavy. Promoter-heavy.
If FY26 sees operating margin expansion from CAPEX spend, great. Else? You might just be sitting on glassware with no chemical reaction.
🧨 Risks
- EPS growth driven more by income than ops
- RPT web needs more transparency
- Capex stress could dent future dividends
- Flat revenue = stagnant pricing power
🏁 Final Verdict
- EPS strong ✅
- Revenue meh ❌
- Valuation fair ✅
- Transparency? Eh. ⚠️
“A good stock at a fair price — but not a compounding machine unless ops catch up.”
Tags: IG Petrochemicals, IGPL FY25 Results, Phthalic Anhydride, EPS Growth, Fair Value Estimate, Other Income Gains, Chemicals Sector, Capex Risk, EduInvesting Analysis
